# Phantom Merge: When Your Large Language Model Agents Pick One but Tell You About Another

arXiv: https://arxiv.org/abs/2610.16141 · HTML: https://mlsanity.com/paper/2610.16141/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Agent threats, guardrails and governance, one of 16 directions in LLM agents and tool use.
- Builds on 40 of its 47 references that are in the map.
- First posted on arXiv 12 Oct 2026.

## Placed in

- LLM agents and tool use / [Agent threats, guardrails and governance](https://mlsanity.com/agents/agent-threats-guardrails-and-governance/)

## Builds on (most cited first, 30 of 40)

- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Locating and Editing Factual Associations in GPT](https://mlsanity.com/paper/2202.05262/) (2022)
- [DeBERTa: Decoding-enhanced BERT with Disentangled Attention](https://mlsanity.com/paper/2006.03654/) (2020)
- [WebArena: A Realistic Web Environment for Building Autonomous Agents](https://mlsanity.com/paper/2307.13854/) (2023)
- [ToolLLM: Facilitating Large Language Models to Master 16000+ Real-world APIs](https://mlsanity.com/paper/2307.16789/) (2023)
- [WebGPT: Browser-assisted question-answering with human feedback](https://mlsanity.com/paper/2112.09332/) (2021)
- [τ-bench: A Benchmark for Tool-Agent-User Interaction in Real-World Domains](https://mlsanity.com/paper/2406.12045/) (2024)
- [FEVER: a large-scale dataset for Fact Extraction and VERification](https://mlsanity.com/paper/1803.05355/) (2018)
- [FActScore: Fine-grained Atomic Evaluation of Factual Precision in Long Form Text Generation](https://mlsanity.com/paper/2305.14251/) (2023)
- [WebShop: Towards Scalable Real-World Web Interaction with Grounded Language Agents](https://mlsanity.com/paper/2207.01206/) (2022)
- [Mind2Web: Towards a Generalist Agent for the Web](https://mlsanity.com/paper/2306.06070/) (2023)
- [Mass-Editing Memory in a Transformer](https://mlsanity.com/paper/2210.07229/) (2022)
- [Probing Classifiers: Promises, Shortcomings, and Advances](https://mlsanity.com/paper/2102.12452/) (2021)
- [SelfCheckGPT: Zero-Resource Black-Box Hallucination Detection for Generative Large Language Models](https://mlsanity.com/paper/2303.08896/) (2023)
- [Designing and Interpreting Probes with Control Tasks](https://mlsanity.com/paper/1909.03368/) (2019)
- [τ2-Bench: Evaluating Conversational Agents in a Dual-Control Environment](https://mlsanity.com/paper/2506.07982/) (2025)
- [Enabling Large Language Models to Generate Text with Citations](https://mlsanity.com/paper/2305.14627/) (2023)
- [API-Bank: A Comprehensive Benchmark for Tool-Augmented LLMs](https://mlsanity.com/paper/2304.08244/) (2023)
- [Smarter, Better, Faster, Longer: A Modern Bidirectional Encoder for Fast, Memory Efficient, and Long Context Finetuning and Inference](https://mlsanity.com/paper/2412.13663/) (2024)
- [SummaC: Re-Visiting NLI-based Models for Inconsistency Detection in Summarization](https://mlsanity.com/paper/2111.09525/) (2021)
- [AppWorld: A Controllable World of Apps and People for Benchmarking Interactive Coding Agents](https://mlsanity.com/paper/2407.18901/) (2024)
- [AgentBoard: An Analytical Evaluation Board of Multi-turn LLM Agents](https://mlsanity.com/paper/2401.13178/) (2024)
- [Chain-of-Verification Reduces Hallucination in Large Language Models](https://mlsanity.com/paper/2309.11495/) (2023)
- [ToolSandbox: A Stateful, Conversational, Interactive Evaluation Benchmark for LLM Tool Use Capabilities](https://mlsanity.com/paper/2408.04682/) (2024)
- [RARR: Researching and Revising What Language Models Say, Using Language Models](https://mlsanity.com/paper/2210.08726/) (2022)
- [Measuring Attribution in Natural Language Generation Models](https://mlsanity.com/paper/2112.12870/) (2021)
- [FacTool: Factuality Detection in Generative AI -- A Tool Augmented Framework for Multi-Task and Multi-Domain Scenarios](https://mlsanity.com/paper/2307.13528/) (2023)
- [QAFactEval: Improved QA-Based Factual Consistency Evaluation for Summarization](https://mlsanity.com/paper/2112.08542/) (2021)
- [Long-form factuality in large language models](https://mlsanity.com/paper/2403.18802/) (2024)
- [How do Language Models Bind Entities in Context?](https://mlsanity.com/paper/2310.17191/) (2023)

## Abstract (arXiv)

LLM agents increasingly operate over multiple entities, where reliable response generation requires not only retrieving relevant evidence but also preserving its association with the correct entity. We identify Phantom Merge (PM), an entity-evidence binding failure in which an agent attributes unsupported claims to its committed entity, potentially even when the task is completed correctly. We formalize PM at the claim level and characterize its prevalence and error subtypes across four agent domains and four backbone families. To address this problem, we propose a two-stage framework for claim-level risk estimation and correction. First, Anchor-Grounded Risk (AGR) combines a representational readout of the agent's pre-emission hidden state with Jacobian-based functional information, providing complementary slot-level and anchor-value risk scores. Second, Fixed-Anchor Correction (FAC) audits flagged claims and selectively revises them using observed anchor evidence or removes them when no supported replacement is available. On the held-out Shopping detection cohort, AGR-slot achieves an AUROC of 96.2% and an average precision of 97.3%, outperforming the evaluated detection baselines. In the end-to-end Shopping mitigation evaluation, FAC reduces trajectory-level PM from 51.4% to 6.2%, with an output-to-original claim ratio of 80.7%. These results demonstrate the prevalence of entity-specific grounding failures and the effectiveness of combining internal risk estimation with evidence-constrained claim correction. Our code is publicly available at https://github.com/LabRAI/PhantomMerge.